China builds dam for Mumbai's water needs

China firm to build dam for Mumbai's water needs

Mon, May 19 03:33 AM

A Chinese state-run firm is all set to become the first from the country to build a dam in India, which aims to ease the drinking water shortage in the country's financial capital Mumbai.

Despite some critics raising the bogey of the security implications of such a project, the Brihanmumbai Municipal Corporation (BMC) has selected a joint venture between China International Water and Electric Engineering (CWE) and India's Soma Enterprises for constructing the Middle Vaitarna dam across the Vaitarna river, about 145 km from Mumbai, sources told The Indian Express.

The civic body selected the company after it submitted a technical bid of Rs 490 crore - well below the projected tender cost of Rs 550 crore. A proposal to approve the selection will be placed before the BMC standing committee of corporators soon, and this is expected to be a mere formality. The project, whose total cost is estimated at Rs 1,600 crore, is one of the most ambitious for the BMC.

When completed in 2011, it aims to supply an additional 450 million litres of water per day. Global tenders were invited last year and seven companies - five of them Chinese - had bid for the project. One Indian and one Chinese firm were disqualified for technical reasons. "We then had to make the selection from the remaining five companies. Since CWE/Soma Enterprises fit all technical aspects of constructing the dam and have also quoted a lower price than the other companies, they have been selected," a top BMC official said. The construction is expected to last three years and use advanced RCC technology, expertise for which was not available for such large projects in India, BMC officials said.

The 105-metre tall dam will be the largest in Maharashtra and will be located in Mokhada in Thane district, almost halfway between Mumbai and Nashik.

But some critics, said to be backed by Indian firms, have launched a campaign through the media against awarding the contracts to Chinese firms, citing what they say are security implications of such a vital project.

They say that the dam, while being a vital installation in itself, will also be located within a few hours from sensitive facilities like the Bhabha Atomic Research Centre in Tarapur, defence establishments in Nashik and the currency press there. Besides, in anonymous documents circulated in the media, they have also cited the Central Government's sensitivity over awarding major infrastructure projects to Chinese firms, giving the example of New Delhi directing Chennai and Mumbai port authorities to reject the bid of Hong Kong-based Hutchison Port Holdings to build new container terminals, among others.

But BMC officials dismiss such concerns. They point out that the Chinese firm will only be bringing its technical expertise and its employees would be involved in project management, while the actual construction would be done by Indian labourers.

Security clearances for Chinese nationals would come from New Delhi, they added. "Moreover, there will be security from the civic body at the spot during construction," one official said.